This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 5.63% yield on straight SEE bond Price of Convertible Bond = 1031.5 Maturity of Convertible Bond = 6 time to first put Value of Straight Bond Portion = $869.39 Value of Conversion Option = $162.11 Or see links on giddy.org to value the convertibl $1,031.50 WACC Convert 3.66% 5.15% 13.13% 8.74% le directly Conversion ratio 14.29 Stock price 49 "Intrinsic value" 700...
View Full Document
- Spring '09